Move to fight inequality, urges United Nations study

While Barbados has been credited for its progress in the fight against COVID-19, a trio of United Nations agencies has suggested that Government strike a blow against inequality.

A study by the organisations has called for greater support to informal entrepreneurs and workers and for the expansion of social protection systems.

The recommendations are contained in the UN Human and Economic Impact Assessment (HEAT) Report for Barbados. The study was jointly produced by the children’s organisation UNICEF, the United Nations Development and UN Women, the agency for gender equality.

The 29-page report, which was based on research conducted by economist Dr Simon Naitram, president of the Barbados Economic Society (BES), also called for the provision of low-cost internet access to improve the ability of vulnerable groups to work and study online.

The report credited policies to help the country through the pandemic such as the unemployment benefit which is expected to pay out over $200 million, lending support to self-employed people, a $40 million VAT Loan Fund, a $20 million Small Business Wage Fund as well as a $200 million Barbados Tourism Facility.

But it noted that informal workers needed to be brought into the formal economy by way of the National Insurance Scheme (NIS).

The study said: “The government should offer non-contributory workers who have lost their incomes due to the pandemic a cash payment under the conditions that they register under the National Insurance Scheme. Given the significant size of the informal economy in Barbados (30 per cent – 40 per cent of economic activity), this policy can pay long-run dividends.”

Social assistance benefits also needed to be expanded further to ensure coverage of increased needs in the short to medium term, it said.

The report added: “Children are more likely to live in poverty, driven by the increase in job loss from female workers in the tourism sector. The Government’s proposal to top-up benefits for families with four or more children should be expanded to all households with children receiving benefits.

“This would recognise the increased burden of care for parents and caregivers, including…  online education learning. It would further account for the greater need of single-headed households -particularly single mothers who are twice as likely to require government grants while caring for the majority of children.”

The COVID-19 pandemic had highlighted the critical role of technology, and in particular the internet, the study said, highlighting inequitable access to the global computer network in Barbados.

The report said: “The internet is a critical tool for access to learning, jobs, entrepreneurship, ideas, markets, finance, and even to social protection. It should, therefore, be treated as a basic right and regulated as a utility. Internet service providers can be engaged to provide low-cost, low-speed options. This expands their customer base while improving the livelihoods of the most vulnerable in society.

“Further, it limits the problem of educational inequalities due to moving to online learning by broadening access to the internet for children in poverty.”

It also recommended the expansion of the Central Bank of Barbados’ Credit Guarantee Scheme as well as the encouragement of gender-sensitive community-based organizations to check up on gender-based violence. randybennett@barbadostoday.bb